What will be the future of money? Take a walk to a restaurant and look at the digital menu board for your favorite combo meal. Only, instead of being priced at $ 8.99, it is shown as .00.00 BTC.
Can crypto really be the future of money? The answer to this question depends on the overall sensitivity to a few key decisions about safety and regulations, ranging from ease of use.
Let’s examine both aspects of the (digital) currency and compare and contrast traditional cryptocurrency with cryptocurrency.
The first and most important element is faith.
It is important that people believe in the currency they are using. What is the value of the dollar? Is it gold? No, the dollar has not helped gold since the seventies. So does it value the dollar (or any other fiat currency)? The currencies of some countries are considered to be more stable than others. In the end, it is the people’s confidence that the money-paying government stands firmly behind it and essentially guarantees its “value”.
How will faith work with Bitcoin because it has become decentralized meaning they are not a steering committee that issues currency? Bitcoin sits on the blockchain which is basically an online accounting book that lets the whole world see every transaction. Each of these transactions is verified by miners (people who operate computers on a peer-to-peer network) to prevent fraud and ensure no double spending. In exchange for their services to maintain the integrity of the blockchain, miners pay for every transaction they verify. Since countless miners are trying to make money everyone checks to see if they are working for each other’s faults. This is the proof of why the blockchain has never been hacked. Basically, this trust gives value to Bitcoin.
Next let’s look at security, the closest friend of trust.
How is my bank being robbed or is there fraudulent activity on my credit card? My deposits with the bank are covered by FDIC insurance. Chances are my bank will reverse any charges on my card that I never did. This does not mean that criminals are less likely to be frustrated and unable to remove stunts over time. More or less peace of mind comes from knowing that I will probably be completely free from any wrongdoing against me.
In crypto, there are many options for where to save your money. It is important to know if the transaction is insured for your protection. There are well-known exchanges such as Beyonc এবং and Coinbase that have a track record of correcting mistakes for their clients. The same is true of crypto, just as there are fewer reputable banks around the world.
What if I set a twenty dollar bill on fire? The same is true of crypto. If I lose my signature on certain digital wallet or exchange certificates, I will not be able to access that currency. Again, I can’t stress enough the importance of conducting business with a reputable company.
The next number is scaling. Currently, this may be the biggest hurdle that prevents people from doing more transactions in the blockchain. When it comes to transaction speed, Fiat Money moves much faster than Crypto. Visa can handle about 40,000 transactions per second. Under normal circumstances, a blockchain can only handle 10 per second. However, a new protocol is being developed that will scatter 2,000,000 transactions per second. Known as the lightning network, it could make crypto the future of money.
The conversation will not be complete without talking about benefits. What do people usually like about their traditional traditional banking and spending methods? Easy to use most of the time for those who like cash. If you are trying to book a hotel room or a rental car, you need a credit card. Personally, I use my credit card wherever I go because of the benefits, protections and rewards.
Did you know that there are companies in the crypto space that provide all of this? Monaco is now issuing a Visa logo-ad card that automatically converts your digital currency into local currency for you.
If you ever try to make sense of wiring to someone, you know that the process can be very tedious and expensive. Blockchain transactions allow users to send crypto to anyone within minutes, no matter where they are. It is much cheaper and safer than sending a bank cable.
There are other modern methods for transferring money that exist in both worlds. Take applications like Jelly, Venmo and Messenger Pay, for example. These applications are used every day for millions of years. Did you know that they have also started connecting crypto?
Jack Dorsey, now Bitcoin and CEO of the Square Cash app, says: “Buying and selling Bitcoin to us is not stopping. We believe it is a conversion technology for our industry, and we want to learn as soon as possible.”
“Bitcoin gives more people access to the financial system,” he added.
While it’s clear that Fiat spending still dominates the way we move most of our money, the new crypto system is rapidly gaining ground. Evidence of this is everywhere. Prior to 2017, mainstream media coverage was hard to find. Now almost every major business news outlet covers Bitcoin. From Forbes to Loyalty, they are all measuring their opinions.
What is my opinion? Perhaps the biggest reason Bitcoin is successful is because it is fair, inclusive and gives financial access to more people worldwide. Banks and large corporations see this as a threat to their very existence. They stand on the brink of an everlasting destruction of the wealth that has been transferred around the world.
Still uncertain? Ask yourself this question: “Do people trust the government or the banks more or less with each passing day?”
Your answer to this question only determines the future of money.